Obama announces plan to lower gas prices

Wednesday

Mar 30, 2011 at 11:31 AMMar 30, 2011 at 11:32 AM

WASHINGTON (NEWSCORE) -- US President Barack Obama outlined Wednesday a new plan to reduce the nation's dependence on foreign oil, expand oil production and increase the use of natural gas in vehicles.

WASHINGTON (NEWSCORE) -- US President Barack Obama outlined Wednesday a new plan to reduce the nation's dependence on foreign oil, expand oil production and increase the use of natural gas in vehicles.

With pressure on consumers increasing due to rising gasoline prices, Obama said he would implement measures to cut US reliance on foreign oil by about one-third over the next decade.

In a speech to students at Georgetown University in Washington, D.C., he also promised that the government would purchase only alternative-fuel vehicles -- including electric cars -- by 2015.

"Meeting this new goal of cutting our oil dependence depends largely on two things -- finding and producing more oil at home, and reducing our dependence on oil with cleaner alternative fuels and greater efficiency," Obama said.

"There are no quick fixes," he added. "And we will keep on being a victim to shifts in the oil market until we get serious about a long-term policy for secure, affordable energy."

As it has in the past, the current political debate over energy policy has reappeared with the emergence of rising prices in the US for gasoline and diesel.

Gasoline prices are up about 15 percent since Feb. 7, according to the Department of Energy. In some parts of the US, gasoline prices have hit $4 a gallon.

Congressional Republicans have been critical of Obama for not allowing more oil and gas drilling. On Tuesday, House Republicans said they would introduce legislation requiring the administration to sell more offshore leases and to issue drilling permits within a set time frame.

But despite criticism to the contrary, Obama insisted his administration has encouraged offshore oil exploration.

"Today, we're working to expedite new drilling permits for companies that meet these standards," Obama said, adding that his government has approved 39 new shallow water permits in addition to seven deepwater permits in recent weeks.

"When it comes to drilling onshore, my administration approved more than two permits last year for every new well that the industry started to drill. So any claim that my administration is responsible for gas prices because we've 'shut down' oil production might make for a useful political sound bite -- but it doesn't track with reality."

Critics have said, however, that trimming the nation's reliance on foreign oil will no't actually pay off for consumers.

"It's important to understand that oil is a global commodity. Its price is set globally, not locally. Even if the US became a net exporter of oil, we would still be susceptible to price shocks and rising global demand pushing up prices," Loris said.

"Also, attempting to produce all our oil domestically without regard to economics will not cut off money going to unfriendly nations as some may believe. If we don't buy it, someone else will."

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